Govt likely to put on hold proposal to revamp the capital gains tax regime

Given global uncertainties, rejigging the tax regime may affect market sentiment

The government is likely to put on hold the proposal to revamp the capital gains tax regime because such a move may affect market sentiment amid global uncertainties, said a senior finance ministry official.
 

“It’s a complex regime and has a wider impact on both markets and businesses. Also, it’s been just a few years since changes to the long-term capital gains tax on equity shares,” the bureaucrat said.
 

Industry has been pitching for revamping the regime to make it simpler, including through rationalisation of multiple holding periods.
 

The government, however, decided not to take it up in the Budget,